Biz Beat Blog

KPMG considers new locations after tower foreclosure

The recent foreclosure of a downtown Dallas skyscraper has put its largest business tenant up for grabs.

The 34-story KPMG Centre tower on Harwood Street was sold at foreclosure auction in June after its owners defaulted on $64 million in debts.

Now its namesake tenant – financial services firm KPMG LP – is in talks with at least two developers who are trying to woo the firm to make a move.

KPMG is considering a relocation to developer Craig Hall’s planned Arts District office tower, which is to be built on Flora Street across from the Meyerson Symphony Center.

And developer KDC is also pitching a plan for KPMG to relocate to the 23-story office tower it wants to build in the Victory Park project just north of downtown, real estate brokers say.

KPMG – which has more than 200,000 square feet in KPMG Centre – would be a big catch for the developers who are in a race to start the first large center city office project since the recession.

The major downtown tenant still has more than two years left on its lease in its current location. But it would take that long to complete a large new building in downtown or Uptown.

Mortgage servicing firm LNR Partners LLC – which foreclosed on the KPMG Centre – is expected to put the tower up for sale. But new owners would be looking at a makeover of the 32-year-old skyscraper to keep it competitive with other office projects.

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Daily breaking news alerts from the Business staff of The Dallas Morning News.